Plus500 is a CFD company with branches in many countries. CFD (Contract for Difference) is a kind of bet and gives you the opportunity to make predictions on things like stock, currency, commodity. You make predictions and bet on the price of these different assets. There are many brokerage firms that enable you to do this, and Plus500 is one of these brokers.
Plus500 has a wide variety of options for trading. These include stocks, cryptocurrencies, or forex. This firm is one of the legal brokerages in the UK for CFD trading and has been running this activity since 2008.
The firm does not charge a commission fee for the transactions made here and offers low spreads. If this is a feature you are looking for, you can add Plus500 to the options. In return, it may charge fees such as inactivity or premium fees.
Through this firm, you can trade CFDs with thousands of trading assets. These include the most preferred cryptocurrencies. However, the tools that enable you to analyze these assets are lacking compared to other alternatives. Similarly, when you need more information about the subject, you realize that the informative materials are not enough. In addition, you will not be able to pair the company’s WebTrader with other platforms.
Is Plus500 Legal?
Plus500 operates legally in the UK and more than 50 countries. It is a public company on the London Stock Exchange and holds the Financial Conduct Authority license. It is also under the control of market regulators such as CySEC, FSCA, FMA, MAS, ASIC. However, some countries, such as the USA, may have certain laws that restrict CFD transactions.
Is Plus500 A Reliable Alternative?
The company is positive in terms of accountability as it is registered with the above-mentioned institutions. In addition, the company provides negative balance protection that can be used in transactions. In this way, users do not lose more than the amount in their account.
But there are some shortcomings as well. For example, if the firm goes bankrupt, steps to protect users’ assets have not been taken. Therefore, it can be expected to offer more guarantee to its customers. It can be said that Plus500 is one of the responsible companies among other alternatives. However, it is necessary to know that such trading transactions always involve risks.